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Last week the Obama administration proposed an effort to raise $2.5 billion over the next 10 years by implementing a surcharge to Medicare enrollees who purchase Medicare supplements. This surcharge would affect all new enrollees who purchase Medicare supplements by adding an average of 15% to the premium on their Medigap policy. Those currently receiving benefits and those near retirement would not be affected.

One official said, "Of particular concern are Medigap plans that cover substantially all Medicare copayments, including even the modest copayments for routine care that most beneficiaries can afford to pay out of pocket." Administration officials explain that the reason for the surcharge is that since there is so little out-of-pocket charge seniors often do not think about the costs associated with the care they receive.

Bonnie Burns of California Health Advocates warns that this surcharge would be terrible for consumers. Burns, along with several insurance industry representatives and consumer advocates, agree on the need for affordable insurance costs for seniors.

Burns said, "Blaming Medigap issuers and customers for any over-use of care seems particularly unfair because federal law prohibits sellers of Medigap insurance from determining whether the care a policyholder has received is medically necessary." Instead, she encourages the government to guard against Medicare by requiring providers to document that the care received is medically necessary.

This surcharge plan will go into the federal fiscal 2013 budget proposal, beginning October 1st, and if passed would take effect in 2017.

Please give us your feedback!
Have any of your clients asked you about this surcharge? What do you say to them about it? How do you think it will affect your Medicare Supplement business in the future?

Source: LifeHealthPro

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In the next few months Mutual of Omaha will be implementing some big changes to their Medicare Supplement plans. For seventeen states, their Med Supps will be introduced under different companies in order to offer lower rates, a household discount in most states, and increased commission.

In order to receive your advances on the new United of Omaha and Mutual of Omaha products you will need to complete an updated advance agreement. Also, for several states, the new Omaha Insurance Company Medicare Supplement product will be available and those currently contracted will need to fill out an updated General Agent Agreement and Advance Agreement (optional). Omaha Insurance Company is the newest Mutual of Omaha Medicare Supplement carrier and offers all the benefits you would expect from their company.

The states directly affected by these changes are as follows:

New United of Omaha states
AL, MT, UT, WA, WY - Approved for sale
Download United of Omaha Advance Agreement

New Mutual of Omaha states
MO - Approved for sale 03/17/2012
ID, IL, TN - Pending approval
Download Mutual of Omaha Advance Agreement

New Omaha Insurance company states
KY, MD, MI, OH, PA, SC, WV, CT - Pending approval
Download Omaha Insurance Company Contract Addendum

In order to avoid delays in New Business, please return the documents to PSM as soon as possible. If you need any updated supplies or have any further questions about the impending changes, please contact your Marketing Director at 1-800-998-7715.

Additionally, PSM offers top Omaha Insurance Company contracts and commissions to qualified agents. Request information online or give us a call.

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When discussing your clients’ health care options and planning for their future, Short Term Care (STC) insurance is a great option for them to consider. Though it is human nature to not want to think about something happening to us, in reality sometimes an unexpected illness or accident forces us to change our lifestyle and adjust our finances. Created especially for the Baby Boomer generation, STC Insurance covers the costs of health care recovery. It gives your clients and their family breathing room and peace of mind during times of crisis.

With the costs of hospital stays skyrocketing, many seniors are now choosing to stay in a nursing home or have a caregiver come to their home in order to recover as quickly as possible. To give your clients perspective on the costs associated with this kind of care, the average price for an in-home care taker is $21 an hour, or $5,040 a month for 8 hours a day/7 days a week. If a nursing home is better suited, the average cost for a semi-private room is $5,940 a month. These costs multiply quickly, however with a monthly payment on par with the cost of a cable or phone bill an STC insurance policy can be in place and money will be made available for the policyholder to draw from when they need it.

Precision Senior Marketing has partnered with MedAmerica to offer our agents one of the most comprehensive and affordable Short Term Care Plans in the industry. To find out more about the benefits for your clients and generous agent commissions, please call PSM at 1-800-998-7715 or visit our MedAmerica Transitions Short Term Care page.

Please give us your feedback!
Do you sell Short Term Care policies to your clients? Do you find them receptive to the product? What benefits do you focus on when talking about it to your clients?

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As you are talking with seniors just aging into the Medicare market, it is important to advise them about the penalties they will pay if they do not sign up for Medicare Part B at the right time. For those seniors who have already filed for Social Security, they will automatically be enrolled in Medicare at age sixty-five. However, seniors who continue in the workforce, either by choice or necessity, and delay their Medicare coverage need to notify Medicare of their decision. Otherwise they will face a 10% Part B penalty for each year that they do not file. So someone filing for the first time at age seventy will face a 50% Part B penalty. The penalty is permanent and can translate into thousands of dollars in unnecessary penalty charges.

For your clients who decide to continue working, advise them to notify Medicare of their decision as soon as they turn sixty-five to ensure they will avoid penalties later. Especially, those seniors who work at a company with over twenty employees, as their employer will continue to provide their benefits. They can do this by choosing the option on the back of the Medicare card that is sent, calling the Social Security Administration, or visiting the SSA website. For their Part D prescription coverage, seniors can delay filing as long as their employer provides equal or better coverage.

Those seniors earning more should also be informed about the surcharges on high-income seniors. Currently, this affects only 5% of seniors, however those still in the workforce are more likely than those retired to fall into the income bracket. The extra charges can be applied not only to Part B, but also Medicare Advantage and Part D coverage.

Advising your prospects of these penalties is great for client retention and relationship growth. While they continue to receive their healthcare from their employer, you can work with them on their final expense, long-term care, and annuity needs until they require a Medicare Supplement.

Please give us your feedback!
Do you have clients who didn't know about these penalties and have suffered inflated costs due to delaying? How do you go about avising your clients who want to delay their Medicare benefits?

Source: KHN

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